Explanation:
MICR stands for Magnetic Ink Character Reader. It is a technology used in banking for processing checks. Here is a detailed explanation:
Magnetic Ink Character Reader:
- The term "MICR" stands for Magnetic Ink Character Reader.
- It is a technology used in banking for the processing of checks.
- MICR uses special ink containing magnetic particles to print characters on checks.
- The characters printed with MICR ink are in a specific font called E-13B or CMC-7.
- These characters are then read by magnetic ink character readers.
Functionality:
- Magnetic ink character readers are devices that can read and interpret the characters printed with MICR ink.
- The reader uses magnetism to detect and decode the characters.
- It can read the MICR line, which is a line of numbers and symbols printed at the bottom of a check.
- The MICR line contains information such as the bank's routing number, the account number, and the check number.
Benefits of MICR:
- MICR technology provides high accuracy and reliability in check processing.
- It reduces the chances of errors and frauds, as the characters printed with MICR ink are difficult to alter or counterfeit.
- MICR allows for efficient and automated check processing, saving time and resources for banks.
Conclusion:
In conclusion, MICR stands for Magnetic Ink Character Reader, which is a technology used in banking for processing checks. It uses special ink with magnetic particles to print characters on checks, which are then read and interpreted by magnetic ink character readers. MICR technology provides accuracy, reliability, and security in check processing.